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HomeMy WebLinkAbout2.e. Policy ReviewAGENDA ITEM: Policy Review AGENDA SECTION: PREPARED BY: Dawn Weitzel, Assistant City Administrator AGEt 2 ATTACHMENTS: 1) Draft Policy Travel and Conference Reimbursement 2) Draft Policy City Credit Card APPROVED BY: RECOMMENDED ACTION: Discussion 4 ROSEMOUNT CITY COUNCIL City Council Work Session: April 12, 2006 EXECUTIVE SUMMARY ISSUE Consider the attached Travel and Conference Reimbursement and City Credit Card policies. BACKGROUND In December Council approved the Elected Official Out -Of -State Travel Policy incorporating language required for compliance with Minnesota State Statutes. As part of the process in December, staff indicated that the City's policy regarding travel reimbursement had not been updated for many years. At this point, Senior Staff, City Attorney and Auditors have reviewed the attached policies. Travel and Conference Reimbursement Pohcy: The purpose of this policy is to provide guidelines and procedures to be used when employees are reimbursed for travel or conference /workshop /framing expenses. It includes a six-tier per diem rate system established by the General Services Admirustrati.on (GSA) and guidance regarding lodging and travel procedures. The policy also answers questions concerning reimbursement procedures. City Credit Card Policy: The purpose of this policy is to provide a credit card to the City Administrator, Department Directors and select employees for the convenience of purchasing materials and paying for Council or employee conference, workshop, or training expenses. The department credit card, a purchase order, or City check are to be used for expenses m excess of $50. Any personal reimbursement for items in excess of $50 must have prior approval by the employee's supervisor. Staff is requesting the use of City credit for several reasons: 1. The process of reimbursement of businesses expenses can take several weeks and some employees do not have credit available to carry them for that length of time. 2 Employees may be receiving some type of benefit (airline miles, cash back, gift certificates) by charging large business expenses on their personal card this may create an issue with the State Auditor 3. It is easier to track business expenditures through the use of a City account. Staff has extensively researched the content of these policies and has sent them to the City Attorney and Auditor for examination and comment. All parties agree that they legally meet requirements and offer solid procedures for employees to follow. SUMMARY Staff requests that Council review the draft pohcies. Changes will be included and brought forth to the regular Council meeting on April 18, 2006. 2 Policy: CITY CREDIT CARD Section: Approved by: City Council Page: 1 of 2 Purpose Policy A department may request a credit card for select employees when there is a demonstrable efficiency to be gained by doing such. One card will be assigned to each department. The City Administrator will review and approve each request for adding authorized users of that account Each department will be charged the annual membership fee and associated late fees, if any, for each credit card. The Finance Department should be notified when any changes occur to a cardholder's status. Card Security The purpose of this policy is to provide a credit card to the City Administrator, Department Directors and select employees for the convenience of purchasing materials and paying for Council or employee conference, workshop, or training expenses. The department credit card, a purchase order, or City check are to be used for expenses in excess of $50. Any personal reimbursement for items in excess of $50 must have prior approval by the employee's supervisor. Personal purchases are not allowed at any time. A cardholder who makes unauthorized purchases or carelessly uses the credit card shall be liable for the total dollar amount of such unauthorized purchases plus any administrative fee charges by the issuing company in connection with the misuse. Violation of this policy will lead to the removal of the user on the department credit card and disciplinary action. 1. It is the Cardholder's responsibility to safeguard the credit card and account number to the same degree that a Cardholder safeguards his /her personal credit information. 2. If the card in lost or stolen, the Cardholder shall immediately notify the issuing company and Finance Director. 3 Prior to separation from the City of Rosemount the Cardholder shall surrender the credit card and current credit card purchases to his /her supervisor. Procedures 1. All purchases must be made by the cardholder. No other person is authorized to use that card 2. The cardholder immediately prepares a credit card purchase form, attaches the purchase receipt, assigns the appropriate encoding and Department Director's signature, and submits to Accounts Payable. 3. Accounts Payable will receive the monthly bill and reconcile with the credit card purchase forms. 4. Payment will be made at the time of billing. TO: Jeff May, Finance Director FROM: The following employee is authorized to be issued a City of Rosemount Credit Card for the department indicated Full Name (print): Sample Signature for Record: Title: City of Rosemount Work Phone: REQUEST FOR CITY ISSUED CREDIT CARD (City Administrator Signature) (Abbreviated to 24 characters or less, including spaces) Department Statement Mailing Address: (Cardholder Name) (City, State, ZIP code) Home Phone: (required to aid in fraud prevention efforts) •wilding Name and Department) (Street Address) Daily and Single Purchase Limit will be $1499.00 Monthly billing limit (per billing cycle) will be $5000 unless it is requested to be higher by the supervisor. I have read and understand the City Credit Card Policy (Cardholder Signature) Date Signature of Department Director Date Policy: TRAVEL AND CONFERENCE REIMBURSEMENT Section: Approved by: City Council Page: 1 of 3 Purpose The purpose of this policy is to provide guidelines and procedures to be used when employees are reimbursed for travel or conference /workshop /training expenses. Applicability This policy is applicable to City employees and elected officials. Elected officials' out -of -state travel must also be in compliance with the Elected Official Out -of -State Travel Policy. Policy Meals and Incidental Expenses Per Diem Employees may be reimbursed by the City of Rosemount for meals and incidental expenses incurred for the ordinary and necessary expenses of traveling away from home for their job. A per diem allowance provides an employee money in advance of travel for payment of meals and incidental allowable expenses. Per diem allowances must be approved by the employee's supervisor in advance of the travel. Employees are entitled to a per diem allowance anytime they are in travel status and authorized lodging costs are incurred. Specifically, per diem covers expenses for breakfast, lunch, dinner, and related tips, taxes, and other incidentals Maximum per diem rates are prescribed for daily reimbursement of meals and incidental expenses incurred during official travel above and beyond lodging and transportation. City credit cards should not be used for items covered under the per diem. As detailed below, per diem rates vary according to locality. A six tier per diem rate system has been established by the General Services Administration (GSA) The listed per diem rates are available by state at www.qsa.qov under Per Diem Rate The column to use is identified as M &lE Rate. A standard per -day rate applies to all locations not specifically listed or encompassed by the boundary definition of a listed point. Per Diem Rate $39 $44 $49 $54 $59 $64 Breakfast 7 8 9 10 11 12 Lunch 11 12 13 15 16 18 Dinner 18 21 24 26 29 31 Incidentals 3 3 3 3 3 3 When one or more meals are furnished at no cost (e.g., included in conference registration fee) to the employee, the per diem rate is reduced by a predetermined amount This is based on the six -tier per diem rate system that has been established by the GSA. Questions regarding appropriate per diem rates should be directed to the Finance Director or Assistant City Administrator. Expenses incurred by a spouse or guest attending a conference with an employee must be paid by the employee. Lodging Lodging must be reserved in advance through the use of a department credit card, purchase order, or City check. The City will only cover the lodging expense of single occupancy and at the discounted hotel rate offered by the conference sponsor If an employee's spouse or guest shares lodging, the employee shall be required to pay for expenses beyond the single rate for the room. The City will cover lodging expenses from the night preceding a conference through the night immediately following such event. Exceptions to lodging procedures due to availability, location, or overall cost savings may be authorized by the employee's supervisor. Transportation Airline The actual cost for transportation is paid by the City through its department credit card or a City check. Air travel is limited to coach or economy fares when such service is available. Automobile If employees use their own personal vehicle, they will be reimbursed for the amount allowed by the IRS Guidelines. This amount will automatically be adjusted as the IRS Guidelines change. Please contact the Finance Department for the current rate. Mileage will be reimbursed for the distance traveled that is in excess of the distance normally traveled to and from the workplace. Parking fees will be reimbursed for their actual amount. Other transportation costs for business purposes such as taxi fares, bus fares, and airport transfers will be reimbursed Reimbursement National Conferences for Exempt Employees Other Rental Cars Rental cars may be reimbursed if they are necessary for transportation to and from the conference Employees will not be reimbursed for rental cars used for personal use such as sightseeing Rental cars must be an economy -sized car Approval from the employee's supervisor or the City Administrator must be obtained prior to renting a vehicle for the expense to be eligible for reimbursement Complete a Request for Employee Reimbursement form and attach any receipts for transportation and /or parking expenses and other allowable expenses incurred during the conference. After supervisor approval, submit the completed form to the Finance Department. Receipts must provide detail for the items purchased. In the event that a receipt can't be obtained, the expense must be approved by the City Administrator. Credit card receipts listing a "total amount" will not be accepted. A per diem allowance will not be provided when the period of official travel is less than 24 hours and does not require lodging. In the instance where attending a conference or training falls into this category, an employee may request allowable meal expenses be reimbursement up to the per diem rate A detailed receipt of this expense must be attached to a Request for Employee Reimbursement form. Prior to the conference or training session, employees should talk to their supervisor regarding allowable expenses. Alcohol is not an eligible expense for reimbursement. Approval for national conference reimbursement must be made, in advance, by the City Administrator. Recreational expenses, such as golf and tennis, will ordinarily not be reimbursed except when the activity is part of the overall conference fee. Premiums for travel insurance or air insurance are not reimbursable. Any questions of interpretation of this policy will be decided by the City Administrator.